Press Release
Surge in mid-market business investment expectations for employee reward and benefits
14 Oct 2024
Insights from leading business and financial adviser Grant Thornton UK LLP’s October Business Outlook Tracker survey show that mid-market businesses are ramping up investment in employee reward and benefits and employee wellbeing.
The findings come in response to an increasing demand from employees for flexible benefits that support balance and promote wellbeing and are also in line with the intentions of the government’s recently unveiled Employment Rights Bill, which includes measures intended to promote flexible working, support working families and set new standards and protections for workers.
Grant Thornton’s survey of 603 decision makers from UK mid-market businesses (£50-£500m turnover) found that:
- 46% of respondents expect to increase their investment in employee reward and benefits (+7pp increase since last round and +10pp above rolling average since 2021)
- 42% expect to increase their investment in employee wellbeing – highest level since August 2022 and +6pp above rolling average
Laurie Eggleston is an Associate Director in Grant Thornton’s Employee Benefits practice. He says:
“The Employment Rights Bill reforms are focussed on strengthening employee rights from day one, so for business leaders it represents a clear opportunity to review existing benefit schemes to ensure they remain relevant. For instance, the changes to statutory sick pay should prompt employers to review existing group income protection arrangements, while the zero hours reforms could also have impact on their pension scheme membership and associated costs for the employer.
“Many employers currently operate benefit schemes with probation periods (where employees only become eligible for things like healthcare after 12 months). The reforms make these policies feel out of date and arguably against the spirit of what the Employment Rights Bill is trying to achieve.
“Collectively though, the package represents a shift in employee expectations and rights. Smart employers will embrace this and demonstrate how they go beyond simply what’s necessary, to stand out as an employer of choice. Having a package of benefits that supports employee wellbeing is increasingly seen as ‘must have’, and doing so rewards employers with a healthier, engaged workforce.
“This bill brings greater job security to compliment the financial, physical and mental wellbeing strategies employers should already have in place for their people. It’s great our research shows that a significant proportion of employers plan to go further, with many expecting to increase their investment in this area over the coming months.”
*Survey conducted by Censuswide on behalf of Grant Thornton UK LLP October 2024 of 603 mid-market business decision makers (mid-market defined as £50-£500m turnover)
